MNI EXCLUSIVE: Interview with Fed Researcher Robert Rich

Gilts and Bunds have benefited from a bid in U.S. Tsys, which was at least partially derived from the previously outlined move lower in the Manheim used car auction pricing data (which has seen a more notable following in post-pandemic times when it comes to monitoring U.S. inflation dynamics). Gilt futures failed to breach existing session highs on the move before backing off to last trade little changed on the day, while wider cash Gilt trade sees 3.5bp of richening to 1.5bp of cheapening as the curve twist steepens. Bund futures have also failed to top existing session highs and last trade -10 or so, while wider German cash trade sees the major benchmarks running little changed to 1.5bp cheaper as the curve bear flattens.

• Wall Street opens mixed-to-flat after Friday's negative close. Futures have recovered off the European morning lows, with the e-mini S&P in minor positive territory. Industrials and consumer staples are the early outperformers, countered by weakness across communication services and utilities. 240 stocks are lower, while 230 names sit in positive territory.
• NYSE TICK Index shows no notable opening activity, retaining the neutral theme present across the opening bell. Friday's pullback is deemed technically corrective in nature, keeping an underlying bull theme intact for now. Any resumption of weakness keeps attention on first support at 4411.98, the 20-day EMA. Bull trigger remains 4498.00, the Jun 16 high.
• Worth recalling that quarterly earnings season kicks off this week, with Fastenal, PepsiCo due Thursday followed by Wells Fargo, JPM BlackRock, State Street and Citigroup on Friday.